Quality Long-Term Investment Choices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HD?
Source: Fool
- Alpine Income Property Trust: With a market cap of $287 million, Alpine recently acquired 177,441 square feet of property for $20.7 million, which is expected to drive earnings growth and maintain a high dividend yield of 6.08%, significantly above the S&P 500's 1.2%.
- REIT Advantages: As a Real Estate Investment Trust, Alpine avoids federal corporate income taxes by returning most profits to shareholders as dividends, providing a stable source of passive income that attracts investors looking for real estate exposure without the management hassles.
- Home Depot's Market Potential: Despite current consumer spending pressures from high inflation and a weak job market, Home Depot, with a market cap of $319 billion, is poised for growth as mortgage rates are expected to decline, unlocking significant home improvement demand.
- Attractive Valuation and Dividend Appeal: Home Depot's forward P/E ratio of 21 aligns with market averages, and its 2.88% dividend yield adds extra appeal for investors, highlighting its potential in long-term investment strategies.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HD
Wall Street analysts forecast HD stock price to rise
23 Analyst Rating
17 Buy
5 Hold
1 Sell
Moderate Buy
Current: 320.750
Low
320.00
Averages
401.47
High
441.00
Current: 320.750
Low
320.00
Averages
401.47
High
441.00
About HD
The Home Depot, Inc. is a home improvement specialty retailer. The Company offers an assortment of building materials, home improvement products, lawn and garden products, decor products, and facilities maintenance, repair, and operations products, in stores and online. It also provides various services, including home improvement installation services, and tool and equipment rental. The Company operates approximately 2,353 retail stores, over 800 branches and more than 325 distribution centers that directly fulfill customer orders across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. Its stores average approximately 105,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. The Company serves two primary customer groups, including both do-it-yourself (DIY) and Do-It-For-Me (DIFM) customers and Professional Customers (Pros).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Quality Long-Term Investment Choices
- Alpine Income Property Trust: With a market cap of $287 million, Alpine recently acquired 177,441 square feet of property for $20.7 million, which is expected to drive earnings growth and maintain a high dividend yield of 6.08%, significantly above the S&P 500's 1.2%.
- REIT Advantages: As a Real Estate Investment Trust, Alpine avoids federal corporate income taxes by returning most profits to shareholders as dividends, providing a stable source of passive income that attracts investors looking for real estate exposure without the management hassles.
- Home Depot's Market Potential: Despite current consumer spending pressures from high inflation and a weak job market, Home Depot, with a market cap of $319 billion, is poised for growth as mortgage rates are expected to decline, unlocking significant home improvement demand.
- Attractive Valuation and Dividend Appeal: Home Depot's forward P/E ratio of 21 aligns with market averages, and its 2.88% dividend yield adds extra appeal for investors, highlighting its potential in long-term investment strategies.
See More
Alpine Income Trust Offers Dividend Growth Opportunity
- Dividend Yield Advantage: Alpine Income Trust boasts a dividend yield of 6.08%, significantly higher than the S&P 500's 1.2%, making it an ideal choice for investors seeking stable income while laying the groundwork for future earnings growth.
- Acquisition Expansion Strategy: The company recently acquired 177,441 square feet of property for $20.7 million, anchored by tenants like Walmart Supercenter and TJ Maxx, which not only enhances the quality of its asset portfolio but also drives future earnings growth, strengthening its competitive position in the market.
- Market Recovery Potential: Despite current consumer spending pressures from high inflation and a weak job market, Home Depot is viewed as a solid long-term investment opportunity, with expectations that declining mortgage rates will revive home improvement demand, thereby boosting the company's performance.
- Attractive Valuation: Home Depot's forward P/E ratio of 21 aligns with market averages, and its 2.8% dividend yield adds to its appeal, even though the analyst team did not include it in their list of top investment stocks.
See More
Trump's Remarks on Iran Talks Boost Dow Jones
- Dow Jones Rise: The Dow Jones index increased following President Trump's comments on Iran talks, reflecting market optimism regarding potential diplomatic changes that could enhance investor confidence and drive further stock market gains.
- Pharma Stock Breakthrough: A pharmaceutical stock cleared an entry point, indicating market recognition of the company's growth potential, which may attract more investor interest and elevate its market valuation.
- Nvidia Stock Surge: Nvidia's stock rose in today's market, benefiting from improved overall market sentiment, which could strengthen its competitive position in the semiconductor industry and drive future earnings growth.
- Market Sentiment Recovery: Trump's remarks sparked a recovery in market sentiment, with investors anticipating improved economic policies, potentially leading to increased capital inflows into the stock market and enhancing overall market activity.
See More
Oil Price Plunge Boosts Stock Market Gains
- Market Surge: The S&P 500 rose by 2.10%, the Dow Jones by 2.30%, and the Nasdaq 100 by 2.19%, indicating a strong market response to the sharp drop in oil prices, which is expected to enhance corporate profitability.
- Oil Price Drop: Crude oil prices plummeted over 10% after President Trump postponed strikes on Iranian energy infrastructure, which will lower fuel costs for airlines and cruise lines, thereby boosting their profit margins.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.34%, reflecting reduced market concerns about inflationary pressures, which supports further stock market gains.
- International Tensions: Productive talks between Trump and Iran may lead to an end to the Middle East conflict, with the International Energy Agency reporting severe damage to over 40 energy sites across nine countries, potentially causing long-term disruptions to global supply chains.
See More
Stock Market Rises as Oil Prices Plunge
- Oil Price Plunge Impacts Market: Following President Trump's announcement to postpone strikes on Iranian energy infrastructure, crude oil prices fell over 7%, directly contributing to a 1.73% rise in the S&P 500 and a 1.97% increase in the Dow Jones, reflecting market optimism over easing geopolitical risks.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.27% on news of a potential end to the Iran war, indicating a reduction in investor concerns about inflationary pressures that could influence Federal Reserve policy decisions.
- Global Supply Chain Risks: The International Energy Agency reported that over 40 energy sites across nine Middle Eastern countries have been severely damaged due to the Iran war, potentially prolonging disruptions to global supply chains and affecting international market stability post-conflict.
- Strong Performance in Tech Stocks: Amidst the overall market rise, technology stocks like Tesla, Nvidia, and Amazon saw gains of over 2%, indicating increased investor confidence in the tech sector, which may lay the groundwork for future market growth.
See More
Analysis of Market Winners and Losers
- Divergent Market Performance: The S&P 500 faced its fourth consecutive weekly decline, breaking below the 200-day moving average, indicating a less constructive environment with only 11 stocks rising, reflecting weakened investor confidence.
- Pepsi's Pricing Strategy: Pepsi plans to lower prices to gain market share, resulting in a 5% stock increase this year despite a 3% drop in the overall market, showcasing its unique market strategy and resilience.
- Consumer Goods Struggles: Major consumer companies like McDonald's, Walmart, Home Depot, and Procter & Gamble faced setbacks, suggesting a potential shift in spending patterns among low-income consumers that could impact sales performance.
- Energy Stocks Rise: Amidst overall market downturns, energy stocks like Exxon and Chevron rose by 2%, indicating that major energy companies may benefit from a reassessment of energy demand despite oil price fluctuations.
See More
Quality Long-Term Investment Choices
- Alpine Income Property Trust: With a market cap of $287 million, Alpine recently acquired 177,441 square feet of property for $20.7 million, which is expected to drive earnings growth and maintain a high dividend yield of 6.08%, significantly above the S&P 500's 1.2%.
- REIT Advantages: As a Real Estate Investment Trust, Alpine avoids federal corporate income taxes by returning most profits to shareholders as dividends, providing a stable source of passive income that attracts investors looking for real estate exposure without the management hassles.
- Home Depot's Market Potential: Despite current consumer spending pressures from high inflation and a weak job market, Home Depot, with a market cap of $319 billion, is poised for growth as mortgage rates are expected to decline, unlocking significant home improvement demand.
- Attractive Valuation and Dividend Appeal: Home Depot's forward P/E ratio of 21 aligns with market averages, and its 2.88% dividend yield adds extra appeal for investors, highlighting its potential in long-term investment strategies.
See More
Alpine Income Trust Offers Dividend Growth Opportunity
- Dividend Yield Advantage: Alpine Income Trust boasts a dividend yield of 6.08%, significantly higher than the S&P 500's 1.2%, making it an ideal choice for investors seeking stable income while laying the groundwork for future earnings growth.
- Acquisition Expansion Strategy: The company recently acquired 177,441 square feet of property for $20.7 million, anchored by tenants like Walmart Supercenter and TJ Maxx, which not only enhances the quality of its asset portfolio but also drives future earnings growth, strengthening its competitive position in the market.
- Market Recovery Potential: Despite current consumer spending pressures from high inflation and a weak job market, Home Depot is viewed as a solid long-term investment opportunity, with expectations that declining mortgage rates will revive home improvement demand, thereby boosting the company's performance.
- Attractive Valuation: Home Depot's forward P/E ratio of 21 aligns with market averages, and its 2.8% dividend yield adds to its appeal, even though the analyst team did not include it in their list of top investment stocks.
See More
Trump's Remarks on Iran Talks Boost Dow Jones
- Dow Jones Rise: The Dow Jones index increased following President Trump's comments on Iran talks, reflecting market optimism regarding potential diplomatic changes that could enhance investor confidence and drive further stock market gains.
- Pharma Stock Breakthrough: A pharmaceutical stock cleared an entry point, indicating market recognition of the company's growth potential, which may attract more investor interest and elevate its market valuation.
- Nvidia Stock Surge: Nvidia's stock rose in today's market, benefiting from improved overall market sentiment, which could strengthen its competitive position in the semiconductor industry and drive future earnings growth.
- Market Sentiment Recovery: Trump's remarks sparked a recovery in market sentiment, with investors anticipating improved economic policies, potentially leading to increased capital inflows into the stock market and enhancing overall market activity.
See More
Oil Price Plunge Boosts Stock Market Gains
- Market Surge: The S&P 500 rose by 2.10%, the Dow Jones by 2.30%, and the Nasdaq 100 by 2.19%, indicating a strong market response to the sharp drop in oil prices, which is expected to enhance corporate profitability.
- Oil Price Drop: Crude oil prices plummeted over 10% after President Trump postponed strikes on Iranian energy infrastructure, which will lower fuel costs for airlines and cruise lines, thereby boosting their profit margins.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.34%, reflecting reduced market concerns about inflationary pressures, which supports further stock market gains.
- International Tensions: Productive talks between Trump and Iran may lead to an end to the Middle East conflict, with the International Energy Agency reporting severe damage to over 40 energy sites across nine countries, potentially causing long-term disruptions to global supply chains.
See More
Stock Market Rises as Oil Prices Plunge
- Oil Price Plunge Impacts Market: Following President Trump's announcement to postpone strikes on Iranian energy infrastructure, crude oil prices fell over 7%, directly contributing to a 1.73% rise in the S&P 500 and a 1.97% increase in the Dow Jones, reflecting market optimism over easing geopolitical risks.
- Bond Yields Decline: The 10-year Treasury yield fell from an 8-month high of 4.44% to 4.27% on news of a potential end to the Iran war, indicating a reduction in investor concerns about inflationary pressures that could influence Federal Reserve policy decisions.
- Global Supply Chain Risks: The International Energy Agency reported that over 40 energy sites across nine Middle Eastern countries have been severely damaged due to the Iran war, potentially prolonging disruptions to global supply chains and affecting international market stability post-conflict.
- Strong Performance in Tech Stocks: Amidst the overall market rise, technology stocks like Tesla, Nvidia, and Amazon saw gains of over 2%, indicating increased investor confidence in the tech sector, which may lay the groundwork for future market growth.
See More
Analysis of Market Winners and Losers
- Divergent Market Performance: The S&P 500 faced its fourth consecutive weekly decline, breaking below the 200-day moving average, indicating a less constructive environment with only 11 stocks rising, reflecting weakened investor confidence.
- Pepsi's Pricing Strategy: Pepsi plans to lower prices to gain market share, resulting in a 5% stock increase this year despite a 3% drop in the overall market, showcasing its unique market strategy and resilience.
- Consumer Goods Struggles: Major consumer companies like McDonald's, Walmart, Home Depot, and Procter & Gamble faced setbacks, suggesting a potential shift in spending patterns among low-income consumers that could impact sales performance.
- Energy Stocks Rise: Amidst overall market downturns, energy stocks like Exxon and Chevron rose by 2%, indicating that major energy companies may benefit from a reassessment of energy demand despite oil price fluctuations.
See More
